US equities: Inflation tilt persists – BNY
The post US equities: Inflation tilt persists – BNY appeared on BitcoinEthereumNews.com. Geoff Yu at BNY highlights that client flows into United States (US) equities remain geared to inflation risk, even as direct inflation-hedge sectors see reduced inflows. BNY’s iFlow equity inflation style indicator shows a wide gap between inflation-sensitive flows and falling breakevens. Yu argues investors accept energy-led disinflation but still fear labor and tech-driven price pressures, keeping sector allocations defensive. Flows and inflation beta in sectors “Client flows into US equities remain sensitive to inflation risk, even as flows into the most direct inflation-hedge sectors have eased. Our iFlow equity inflation style indicator tracks this by estimating the correlation between industry-group returns and changes in the two-year breakeven inflation rate. It then compares that with accelerated flows into the same sectors.” “The break came in May: breakeven inflation fell sharply as ener